Here we go again!
Wave after wave of uncertainty has hit the market and has kept many investors from achieving their goals.
We’ve experienced a pandemic, a war in Ukraine, record high inflation, and significant supply chain issues.
Now rising interest rates and fears of a recession are spooking the stock market.
It’s no wonder I’ve been asked by individual investors and TV personalities to breakdown what is happening in the market.
Here’s the thing. Despite the volatility we are experiencing, it is important not to lose sight of the longer-term trends that are at work in the market. There are four specific trends that have me optimistic about the investing landscape in the second half of 2022.
Reason #1: Earnings
Despite a few big-name companies missing earnings, my favorite economist, Ed Yardeni, recently pointed out that analysts are still revising their 2022 &2023 earnings estimates higher and there is aggressive insider buying.
Reason #2: The Federal Reserve
The Fed is desperately trying to raise rates enough to stifle inflation while avoiding a recession, which is called a “soft landing.” Despite any future rate increases, I’d say the Fed will maintain its “Goldilocks” environment of low interest rates amidst strong economic growth.
Reason #3: The Economy
There is a strong economic recovery underway. The most bullish news was that March retail sales were revised up to a 1.4% increase, up from the 0.7% previously reported. Vehicle sales also rose which is a good sign that consumers are buying big-ticket items. Consumers are spending more than the underlying rate of inflation, which bodes well for continued strong GDP growth.
Reason #4: The Dollar
The U.S. is blessed with a strong U.S. dollar, putting downward pressure on commodity prices (since commodities are priced in U.S. dollars). The Wall Street Journal dollar index has risen an impressive 8% this year. A strong dollar is also expected to put downward pressure on import costs and further reduce inflation.
We’ve Been Here Before
Navellier & Associates was actually founded in 1987—during an incredible period of fear and market volatility. That’s when I launched my firm and doubled down on my commitment to help individual investors no matter what the market threw at us.
In the 30+ years since then, we have guided our clients through every market boom and correction including the summer of 1998, fall of 2002, early 2008, and March 2009.
During each of these significant corrections, we created custom portfolios that we believe will stand the test of time.
Our strategies are created with the following in mind:
- We carefully select stocks based on extensive key data and economic indicator research.
- We diversify our portfolio to prepare for both the upside and downside swings of the market.
- We NEVER try to time the market, which is one of the most common mistakes investors make.
Instead, we rely on our extensive research, trend analysis, and customized strategies to manage our client-only portfolios and help our clients take advantage of the opportunities presented by market corrections in both the short and long term.
Let’s take a closer look at why careful stock selection is so important right now.
Prepare for a Narrowing Market in 2022
Even with earnings, The Federal Reserve, the economy, and the U.S. dollar working in our favor, not every U.S. stock is poised to deliver maximum returns. In fact, careful stock selection is more critical now than it has been before.
As 2022 progresses, I expect stock market leadership to become increasingly narrow. Fewer and fewer stocks will garner media and investor attention. However, I still believe that there is plenty of growth to enjoy, but you’ll have to find the right stocks.
This is why I am making it a priority to put all of the experience and resources available at Navellier & Associates to work for you and your personal portfolio.
Our portfolios can be customized for Growth, Income, or Capital Preservation when it’s time to get defensive.
Our team can help you develop a robust portfolio that accounts for your goals, risk tolerance, and industry-specific investments. With the first step being a no-obligation, custom portfolio deep dive.
Get Your No-Obligation Portfolio Deep Dive Today
My team and I are currently providing no-obligation portfolio deep dives. We strive to ensure that every deep dive is unique and tailored to your specific needs.
Each deep dive includes these four critical evaluations:
- Diversification Check
- Sector Check
- Earnings Evaluation Check
- Risk Analysis Check
Each deep dive is backed by our 30+ years of investing experience.
To qualify for a portfolio deep dive you must:
- Have a U.S.-based investment account.
- Have a minimum account value of $250,000.
- Are able to provide portfolio holdings for strategy and risk analysis.
We want to work with articulate clients who see value in financial advice and are motivated to take appropriate action.
These deep dives are available only to the first 100 investors who respond to this email before June 30th, 2022.
If you want to learn how to find profitable investments and protect your downside in any market, schedule your no-obligation portfolio deep dive today!
Chief Investment Officer
Navellier & Associates